Franchise Loan
Our microfinancing offering can help you apply for or expand the franchise business you’ve always wanted.
Overview
Franchising has never been this easy! Our no-collateral business express loan can help jumpstart or expand your franchise business. You can use the funds to:
- Buy equipment
- Buy a stall/venue
- Pay for franchising fees
- And other business expenses!
At a Glance
| Loan Term | Monthly Add-on Interest |
| 12 months | 1.40% |
| 18 months | 1.50% |
| 24 months | 1.80% |
| 36 months | 1.85% |
| Minimum Loan Amount | P500,000 |
| Maximum Loan Amount | P5,000,000 |
Why Get a Franchise Loan?
No collateral required for loans up to P5,000,000
Avoid the hassle with minimal application requirements
Enjoy seamless processing & approval in as fast as 5 days!
Loan proceeds are auto-credited upon disbursement of funds.
Fees and Charges
| Processing fee | PHP 2,000* |
| Notarial fee for Sole Proprietorships | PHP 400 |
| Notarial fee for Partnerships and Corporations | PHP 800 |
| DST | Approved Loan Amount / 200 * 1.50 |
| Penalty fee | 3% of past-due amount for the month |
*The P2,000 processing fee will be waived if an average daily balance of P100,000 is maintained for 3 months (from opening date).
Eligibility Requirements
- The businesses to which the loan will be applied for must meet the following criteria:
- Duly registered to operate as a business in the Philippines;
- Must have been operating for at least 3 years, and profitable for the latest 1 year.
- Must have no outstanding debt that exceeds 40% the company’s monthly income
- Each franchise loan must be tied to the business’ primary owner; for partnerships/corporations, this means:
- Owner with simple majority (individual with the single largest stake in the company) must provide details and sign off on the loan application form, and ultimately be the signatory in the surety agreement prior to loan booking
- If simple majority is shared across multiple owners, only (1) of them is required to sign off on the loan
- Identified business owners will then be required to have:
- An existing account with Security Bank (at least 6 months old with PHP 50K ADB) OR Existing credit card (any bank; credit card number/s must be provided in application)
- Permanent residency in the Philippines;
- At least 21 years of age at the time of application and not more than 65 years of age upon maturity of the loan
Documentary Requirements
SOLE PROPRIETORSHIP
- Signed and Completed Application Form
- Copy of 2 valid IDs with photo from primary applicant / owner / authorized signatory
- Latest ITR with BIR stamp
- Latest (1) year Audited Financial Statements
- Valid DTI Registration docs
- Latest 3 months bank statement
- List of customers/suppliers and details about their dealings
- Valid Business or Mayor’s Permit
- Franchise certificate
PARTNERSHIP/CORPORATION
- Signed and Completed Application Form
- Copy of 2 valid IDs with photo from primary applicant / owner / authorized signatory
- Latest ITR with BIR stamp
- Latest (1) year Audited Financial Statements
- Valid DTI/SEC Registration documents and GIS
- Latest 3 months bank statement
- List of customers/suppliers and details about their dealings (The following documents will be required by the bank prior to loan booking:
- Partnership / Board Resolution (authorizing signatory for accounts and loan, credit investigation on both the business and owners)
- Continuing Suretyship Agreement (for corporations) Client will be given templates at point of application to prepare for the loan decision )
- Valid Business or Mayor’s Permit
- Franchise certificate
Ready to start your franchise loan application?
Yes, I am ready to apply now.Frequently Asked Questions
How can I apply?
You can apply through:
- Online Application Form
- Download Business Express Application Form together with the requirements and submit at a branch near you.
How will I be notified of approval?
You will receive an SMS upon loan approval and a SPOC will reach out to you to set a booking appointment in the branch.
How will I receive loan proceeds?
Upon booking, loan proceeds will be credited directly to your identified account. If you do not have a Security Bank CA/SA account at point of booking, you will have to open an account with the branch.
What are the modes of payment?
All Business Express Loans (BEL) monthly amortizations will be collected either via the Auto-Debit Arrangement (ADA) from their nominated or identified Security Bank deposit account or via Postdated Checks (PDCs) for New-To-Bank (NTB) clients.
Can the loan be pre-terminated?
Yes, the loan can be pre–terminated the loan but there will be a processing fee equivalent to 3% of remaining principal balance plus unpaid interest for the month that shall be applied to your account.
Can I re-avail of a loan?
Loans can be re-availed as long as half of the balance of the original loan term has been paid, and there has been no record of missed payments. Example: Original loan term is for 12 months and amortizations have been paid for 6 months already, client can apply for re-availment. Upon booking, the previous loan balance will be deducted from the proceeds of the new loan.
Can I avail of two business express loans at the same time?
Borrower cannot avail two separate loans at the same time. At least half of the term for the existing loan must be paid off first before they can apply for another loan.